IHCL ANNOUNCES FINANCIAL RESULTS FOR Q2 & H1 FY 2024-25

The Indian Hotels Company Limited (IHCL) announced its consolidated financial results for the second quarter ending on September 30, 2024. IHCL opened 14 new hotels, bringing the total number of operating hotels to 232.

By Priyal Dutta 08 Nov 2024 in Hotel Hotels

New Update

IHCL signed 42 hotels which included 12 Taj hotels, three of which are in international markets of Bahrain and Thimpu, 3 each in SeleQtions and Vivanta, 5 under Tree of Life, 9 under the newly reimagined Gateway and 10 under Ginger.

The Indian Hotels Company Limited (IHCL) reported its consolidated financial results for the second quarter ending September 30, 2024.

KEY CONSOLIDATED FINANCIAL RESULTS FOR Q2 AND H1 FY 2024-25

Q2 YoY PERFORMANCE (POST TAJSATS CONSOLIDATION)

Revenue ↑ 28%

EBITDA ↑ 40%

EBITDA % ↑ 2.7pp

PAT ↑ 232%

₹ 1,890 Cr

₹ 565 Cr

29.9 %

₹ 555 Cr**

Q2 YoY PERFORMANCE (PRE TAJSATS-CONSOLIDATION AS A SUBSIDIARY)

Revenue ↑ 16%	EBITDA ↑ 30%	EBITDA % ↑ 3.3pp	PAT ↑ 48%
₹ 1,722 Cr	₹ 524 Cr	30.5 %	₹ 247 Cr

H1 YoY PERFORMANCE*

Revenue ↑ 16%

EBITDA ↑23%

EBITDA % ↑ 1.7 pp

PAT ↑ 106%

₹ 3,486 Cr

₹ 1,061 Cr

30.4%

₹ 803 Cr**

*Puneet Chhatwal, Managing Director and CEO of IHCL*

Puneet Chhatwal, Managing Director and CEO of IHCL, stated, “The second quarter experienced a robust revival in demand, leading to an overall revenue growth of 28% and a 16% increase in the hotel segment. This marked our best-ever consolidated EBITDA margin for Q2, reaching 29.9%.”

For FY2025, we maintain our guidance of double-digit revenue growth, driven by strong performance in New Businesses, healthy same-store performance, and not solely reliant on like-for-like growth. This is evident from a robust 16.5% increase in consolidated hotel segment revenue in October, and we expect this growth to accelerate in the remaining months of Q3.”

He mentioned, “IHCL has achieved a record signing of 42 hotels, resulting in an industry-leading portfolio of 350 hotels. The company has successfully met its market guidance by opening two hotels per month, with a total of 14 new hotel openings to date. Additionally, IHCL will take over the management of the landmark hotel The Claridges in New Delhi in April 2025 under a hotel operating agreement. Furthermore, IHCL has entered into definitive agreements to acquire a majority stake in the Tree of Life brand holding company, thereby expanding its brand offerings with a boutique leisure option.”

DELIVERS RECORD Q2 FINANCIAL PERFORMANCE

- Double-digit RevPAR performance across all brands with domestic same store hotels delivering a 12% growth in Consolidated RevPAR with a premium of 66% vs competition across the enterprise.

- International Consolidated portfolio reported an occupancy of 75% (up 600 basis points), resulting in a RevPAR growth of 10%.

- Management Fee income grew by 15% to INR 100 crores on the back of not like for like growth.

EXPANSION MOMENTUM CONTINUES – TILL DATE

- IHCL signed 42 hotels which included 12 Taj hotels, three of which are in international markets of Bahrain and Thimpu, 3 each in SeleQtions and Vivanta, 5 under Tree of Life, 9 under the newly reimagined Gateway and 10 under Ginger.

- Further to receiving key approvals, IHCL’s greenfield projects - Aguada Plateau, Goa and Shiroda, Maharashtra are set for a timebound development of these marquee hospitality assets.

- IHCL opened 14 new hotels taking the total operating hotels to 232 across brands with a Taj in Patna, a Gateway in Bekal and a Vivanta in Jamshedpur including SeleQtions in Thimpu and Mahabaleshwar and 3 Tree of Life resorts and 6 Ginger hotels.

NEW BUSINESSES & REIMAGINED BUSINESSSES – Q2 PERFORMANCE

- The Air & Institutional Catering business segment (TajSATS) clocked a revenue of INR 254 Crore, 19% growth over the previous year and sustained EBITDA margin at 24%.

- New Businesses vertical comprising of Ginger, Qmin and amã Stays & Trails reported an Enterprise revenue of INR 173 crores, a growth of 42% and Consolidated revenue of INR 143 crores, a growth of 47%.

- Enterprise Revenue of Ginger exceeded INR 150 Crore with a strong EBITDAR margin at 42% and a portfolio of 100 hotels with 70 in operations.

- Qmin has grown to 52 outlets and amã Stays & Trails has reached a portfolio of 227 bungalows with 116 in operations.

ESG+ FRAMEWORK OF PAATHYA

- IHCL now uses 38% energy from renewable sources and has installed 336 EV charging stations.

- Continuing its journey of eliminating single use plastic, IHCL installed 55 bottling plants and achieved 45% + recycling of water used.

- Bridging the employability gap in the industry, IHCL has partnered for 37 skill centres across 15 States in India.

Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL

Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL, stated, “In Q2, the IHCL Consolidated hotel segment reported a robust EBITDA margin of 30.5%, reflecting a 330-basis point expansion, driven by double-digit revenue growth and sustained operational leverage. IHCL Standalone achieved an all-time high revenue of INR 1,125 crores, representing a year-on-year growth of 19%, with an EBITDA margin of 38.6%, an increase of 390 basis points. Signifying a strong balance sheet, the gross cash position for IHCL Consolidated as of September 30, 2024, was INR 2,460 crores.

He added, “In alignment with our strategy to simplify the holding structure, TajSATS has been fully consolidated into IHCL for two months during Q2. IHCL Consolidated Profit After Tax (PAT) grew by 48% on a year-on-year basis to INR 247 crores, excluding an exceptional item of INR 307 crores related to this consolidation.”

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